What is liability insurance? Each of us is familiar instances of individuals and economic agents have to indemnify or pay the penalty. All this is not very pleasant due to the monetary costs - sometimes considerable. Those at risk include those who by virtue of his office, profession, or the conclusion of the relevant contract are potentially liable. These include building contractors, doctors, lawyers, tenants of land, responsible tenants, etc.
Liability insurance. Goals and objectives
Liability insurance provides an opportunity to shift the burden of this responsibility itself on the insurance company, bought the policy and protect you from unexpected costs in the future. For economic agents to take part in state or municipal bidding for large orders, services, implementation of major works or supply of goods, liability insurance is a must. This includes Federal Law № 94-FZ of 21.07.2005, according to which a contract of this kind is only provided simultaneous conclusion of the contract and liability insurance. Thus insured the civil liability of the entity to third parties, which may be caused by damage to property by reason of any act of the insured. This insurance protects the insured against possible financial losses that could threaten him by arbitration award or court because of the damage caused to third parties.
Liability insurance and its types
Liability insurance can be classified into three types. One of the main things is liability insurance to third parties. Insurers are the most common drivers of motor vehicles, airlines, ship owners, and entrepreneurs.
Professional liability insurance. Insurable interest in this case is the property damages caused by erroneous actions of representatives of various professions: doctors, lawyers, collectors, accountants, engineers, etc.
Liability insurance producers for its quality - in case consumers would suffer damage to property due to its poor quality.
Liability insurance contract provides for the transfer of the insurer liability for damages to third parties as a result of actions that fall under the contract coverage. In other words, the insurer must defend the interests of the insured, arguing his innocence to the event, or to cover the loss, the responsibility for which rests on him.
Differences liability insurance of property insurance
Property insurance protects the insured from insurance claims arising from the contract or from all risks. When the liability insurance on the definition of insurance claims used two bases: general insurance and specific. What can be considered specific liability insurance? To this species include the liability insurance of vehicle owners. This is also the responsibility of employers to employees hired to work. In the above cases, the area of responsibility of the insurer outlined a relatively small list of insurance events (e.g. traffic accidents).
Insuring their responsibility, the entity or citizen pays the cost of the contract, in return for much-needed confidence in the company, the insurer will guard its interests in the event that the case goes to court or arbitration. Individual cases also involve liability insurance and reimbursement of medical expenses. There are cases where the mere fact of having an insurance policy can play an important role - not less than the insurance claim. Sometimes courts, given the reliable insurance coverage, submit a favorable judgment for the insured, and to award the plaintiff to a lesser extent than that which would have been appointed, nor bear the policyholder liability insurance policy (which, incidentally, covers the legal costs and also).
By entering into a contract of liability insurance, keep in mind that it may involve a number of limitations. For example, the limit for a single insurer, which implies a ceiling (maximum amount) of compensation for each victim of the actions or omissions of the insured. The limit can be set on the number of insur